Central Banks Adopt Cash Quarantine to Control COVID-19 Pandemic, Is Crypto a Better Alternative?
The coronavirus pandemic has severely affected economic activities around the globe. As part of strategic measures to control the spread of the virus, countries such as China and South Korea have since implemented cash quarantine. The countries decided to take this step after the World Health Organization (WHO) has revealed that cash is a major medium of transfer of the virus.
The most recent country to have also taken this preventive step is Hungary. According to a local report the country’s central bank announced that billions worth of bank notes are being removed from circulation daily, and isolated for 14 days. The bank decided on a 14 days’ quarantine since that is the incubation period of the virus.
A recent research conducted by German scientists revealed that the coronavirus can survive on paper surfaces like bank notes for 4-5 days. Even with the use of ATMs, which are plastics, the virus can also survive on them for even 9 days.
This has necessitated the use of absolutely contactless payments such as online payments and other digital methods. As such, the WHO had advised that such contactless payments should be employed in order to control the spread.
This is when cryptocurrencies come to play. They are decentralized digital currencies which are always available to everyone without boundaries. Crypto transactions are completely contactless and globally available, making them superior to fiat money.
Many central banks have made significant progress with issuing their own centralized digital currencies. Notable among them is China, Singapore, Cambodia and the U.S. Though some of these countries have slowed down work on the CBDC, there may never have been any better time to launch them than now. This is because, the need for digital payments has never been stronger than the period we are in now.
Featured image courtesy of Shutterstock. Source: Cryptopress.